Programme timings

09:00 - 09:05

Chairman’s Introduction

09:10 - 09:50

Boardroom session 1

09:55 - 10:35

Boardroom session 2

10:55 - 11:35

Boardroom session 3

11:40 - 12:20

Boardroom session 4

12:25 - 13:05

Boardroom session 5

European asset-backed securities: a more predictable source of income Mark Holman, Founder and Managing Partner and Ben Hayward, Partner and Portfolio Manager

Mark Holman and Ben Hayward take a close look at one of fixed income’s largest sectors that is still misunderstood by much of the broader investor community. Many have unfairly compared the market with the US which was seen as the source of many of the problems triggering the credit crisis. The reality in Europe is very different, where lending against secure pools of strong collateral is amongst the very highest quality lending to be found. The result is a sector that currently offers the best relative value in the credit universe with greater predictability. Ben and Mark will go on to explain why.

Global themes driving the fixed income market
Adam Grotzinger, Vice President, Portfolio Specialist

We see two big themes in the global fixed income markets: divergence and interest rate rises. In 2009, many markets were closely correlated. This was true whether we looked at economic variables; currencies or spreads. We believe that 2010 will provide a much greater degree of differentiation. Countries will not recover at the same pace, inflation will not be as big a risk in some countries as in others and currencies will not all move in the same way. Adam will discuss the global themes supporting this view and highlight where the 100-strong Franklin Templeton Fixed Income Group are seeing the strongest opportunities in global bond markets.

Where now for credit markets?
Simon Thorp, Head of Fixed Income

• After the explosive returns of 2009 and with the threat of rising interest rates and cost of capital, is it all over for credit?
• Is sovereign default risk a real threat? What would be the knock-on effect to the rest of the credit markets of such an outcome?
• Does financial credit offer the best risk/reward in the market? What are the chances of a secondary banking crisis?
• With hundreds of billions of non-investment grade paper maturing over the next 3-4 years and with banks reluctant to lend, where will companies find liquidity?

Short-dated bonds – a quantum of solace
Chris Lynas, Director and Ian Kenny, Director

The shape of the gilt yield curve tells us that cash deposit rates in the UK are unusually low and probably set to stay that way for some time. Investors are looking for better returns than cash but are mindful of the risks involved. Meanwhile, credit spreads on investment grade bonds are high, leaving investors with a choice – to take duration risk or credit risk. One solution is to stay low risk in both by investing in short-dated investment grade corporate bonds. Chris and Ian will explain this investment strategy.

Cazenove Strategic Bond Fund
Peter Harvey, Head of Credit

Peter Harvey discusses his outlook for the credit market, together with an overview of the top performing Cazenove Strategic Bond Fund and the main investment themes he is currently focusing on. The fund forms part of a £550m strategy, which has been successfully running for more than four years. The fund sits in the top quartile of the Sterling Strategic Bond sector over three years and since inception (04/04/06)* and is A rated by OBSR.

• the fund is a credit fund with a total return objective
• it invests in a combination of high yield debt, investment grade debt and derivative instruments
• the fund aims to substantially outperform sterling cash over the medium term
• Peter is able to hedge, short and lever using credit default swaps

* Source: Lipper, net income reinvested at 31/03/10. Past performance is not a guide to future performance.

TwentyFour Asset Management

Franklin Templeton Investments

Liontrust

Smith & Williamson

Cazenove Capital

Cazenove Capital

TwentyFour Asset Management

Franklin Templeton Investments

Liontrust

Smith & Williamson

Smith & Williamson

Cazenove Capital

TwentyFour Asset Management

Franklin Templeton Investments

Liontrust

Liontrust

Smith & Williamson

Cazenove Capital

TwentyFour Asset Management

Franklin Templeton Investments

Franklin Templeton Investments

Liontrust

Smith & Williamson

Cazenove Capital

TwentyFour Asset Management